Mobile payments are extraordinarily effective in rapidly boosting sales of low-cost virtual goods and digital content. Mobile payments are a guaranteed way to quickly expand market reach and satisfy demand from buyers world-wide who want to pay by mobile.

Social networks, online games, MMOG, and merchants selling music, video, e-books, new media, and digital entertainment are taking advantage of the rapid rise in mobile payment transactions to power business growth.

Advantages of Mobile Payments

• Increase revenues with no expense.
• Boost sales instantly
• Reduce chargebacks
• Global network for fast expansion world-wide.
• Secure and private. No personal information disclosed.
• Easy to use. No registration required.

How to Increase Sales without Spending Money

Mobile billing is excellent for micropayments of virtual goods and digital content. Millions of consumers world-wide do not have credit cards or bank accounts. Everybody has a mobile phone. Most digital merchants have no payment processing fees on mobile billing transactions because mobile surcharges can be passed on to consumers. For example, if the price point on a product is $1, the merchant receives the entire $1. Consumers are billed in local currency.

Will consumers really absorb the fees for mobile billing? Millions of successful mobile payments have proven the answer is YES. Buyers are perfectly willing to accept mobile surcharges for low-cost digital items in exchange for convenience and instant gratification.

Younger consumers have grown up with mobile phones and expect to be offered a pay-by-mobile phone option. Yet, digital merchants discover buyers of all ages are receptive to mobile payments.

Consumers want mobile payments and the demand is escalating. World-wide, mobile payments will grow to $300 billion by 2013. In some countries, mobile payments already account for 70% of all digital content purchased online.

Credit Cards Payment Processing Expensive and Risky

Merchants who do not have mobile billing are losing sales and adding unnecessary risk to their business operations.

Virtual goods are low-ticket items with price points well below $10. Credit card processing rates for micropayments are expensive and quickly erode profit margins.

Digital merchants are frequent targets for credit card fraud. Cybercriminals cause chargebacks by running small transactions to determine if stolen cards have credit available. Consumers initiate chargebacks claiming digital products were never received. The time and effect required to fight chargebacks far exceeds the cost of the low-ticket virtual goods. Even if the merchant wins, elevated chargeback ratios put credit card payment processing accounts at risk.

Mobile Payment Processing Fast and Easy

One simple plug-in gives merchants the ability to immediately accept payments from any mobile phone throughout an extensive global mobile billing network. Mobile transactions are in local currency. Local language customer support enhances buyer satisfaction.

Award-winning technology powers a comprehensive suite of mobile payment processing solutions. Multiple innovative products meet the mobile payment processing needs of any business.

Case Summaries

• Social Network: This client is selling millions of dollars worth of low-cost virtual goods. The owners of the company are young and knew mobile payments are an important part of maximizing revenues. Additionally, the company is experiencing dramatic international growth and needed a way to capture sales from buyers who did not have credit cards, bank accounts, or simply preferred the convenience of mobile payments. Both company and members are delighted with the mobile payment solution. The company knew that buyers under 30 would embrace mobile payments. However, they were amazed at the number of older users who are paying with mobile. For example, women between 35-55 are the fastest growing consumer segment purchasing virtual gifts.

• Online Game Publisher: This merchant has players in 30 countries. They have long offered SMS billing but were having problems with old-fashioned billing methods offered by the mobile carriers. There was no flexibility of pricing. Audit trails of transactions were not available and customer service was a nightmare. The company now uses our modern new mobile billing platform. All mobile surcharges are passed on the players so the company incurs no payment processing fees. Audit trails and online reporting make account reconciliation simple, fast and easy. Customer service is available in local language in every country where mobile billing is offered. The company increased revenues 15% the first month mobile payments were offered. Growth has continued in each subsequent month. The company says mobile payments are a key factor in acquiring new international players.

• Online Music Store: The company was accepting credit card payments for digital downloads of music in blocks of $10 or more. However, many customers wanted to pay one or two songs at a time. Credit card payment processing fees for a $1 item cost the merchant more than 30% of the sales price. The company now offers mobile payments for digital downloads under $5. The average ticket for purchases by mobile phone is $2.50. The company passes all mobile fees to the buyer. The company is expanding into China, Russia, Europe and the Middle-East and is offering mobile payments in every country.